Question
A multinational publishing house is looking to adjust its bonus structure for editors based on the performance of the books they manage. The company aims
A multinational publishing house is looking to adjust its bonus structure for editors based on the performance of the books they manage. The company aims to explore the relationship between the performance of a book series and the bonuses awarded to editors.
The table below shows the data from the previous year, detailing the bonuses received by editors and the yearly percentage increase in sales for each book series they managed. These variables are labelled as Bonuses and SalesGrowth, respectively.
a) Construct a scatter plot for the editors' bonuses (variable Bonuses) against the yearly sales growth (variable SalesGrowth). Discuss any observable trends and relationships. Are any outliers or high leverage points present in the dataset?
b) Fit the model below and document your findings. = 0 + 1 +
c) Generate the corresponding residual plot (residuals versus predicted values). Evaluating this plot, does the estimated model seem adequate?
d) Estimate a revised model, now incorporating the adjusted variables Bonuses-Adj and SalesGrowth-Adj, which exclude any data points where editors' bonuses seem disproportionately high relative to the sales growth of their book series. Through the findings identify nine data points that are disproportionately high; include these in the response.
Bonuses ($) | SalesGrowth (%) |
56940 | 14.1 |
52052 | 10.9 |
58344 | 23.5 |
30056 | 5.9 |
71136 | 13.8 |
59540 | 20.0 |
56056 | 16.4 |
56888 | 16.3 |
64324 | 10.5 |
43316 | 26.3 |
29484 | 25.9 |
48516 | 26.8 |
69628 | 14.8 |
48724 | 22.3 |
104572 | 56.3 |
82420 | 12.6 |
47060 | 20.4 |
55016 | 1.9 |
47944 | 19.9 |
63440 | 15.4 |
53144 | 38.7 |
39468 | 16.4 |
73528 | 24.4 |
54132 | 15.6 |
87776 | 14.4 |
155116 | 19.0 |
60320 | 16.1 |
199888 | 12.1 |
24752 | 16.2 |
77584 | 18.4 |
53248 | 14.2 |
82836 | 14.9 |
22204 | 12.4 |
43108 | 17.1 |
41444 | 16.9 |
30004 | 18.1 |
69784 | 10.9 |
92248 | 19.3 |
36868 | 18.3 |
44720 | 18.4 |
69472 | 13.8 |
26832 | 13.7 |
48412 | 12.7 |
42380 | 15.1 |
87412 | 16.5 |
29536 | 10.2 |
40300 | 19.6 |
61776 | 12.8 |
40664 | 15.9 |
60840 | 17.3 |
76388 | 8.5 |
47632 | 16.4 |
55640 | 19.5 |
46488 | 19.2 |
43108 | 15.9 |
40560 | 19.9 |
121004 | 28.1 |
37284 | 25.0 |
71136 | 15.0 |
105456 | 12.6 |
62140 | 20.3 |
13312 | 22.7 |
40300 | 14.8 |
73164 | 13.2 |
28236 | 10.3 |
45448 | 17.7 |
66924 | 10.0 |
64896 | 15.6 |
45500 | 6.8 |
48100 | 12.4 |
41496 | 13.1 |
39520 | 15.8 |
31200 | 12.8 |
51532 | 15.3 |
81640 | 0.5 |
47372 | 16.5 |
70720 | 15.1 |
36400 | 13.0 |
38532 | 11.1 |
57044 | 8.9 |
49556 | 17.5 |
22932 | 15.9 |
30940 | 14.2 |
55484 | 9.3 |
67496 | 9.5 |
93496 | 15.5 |
215436 | 14.4 |
69472 | 11.1 |
91000 | 15.9 |
47424 | 16.4 |
98384 | 8.6 |
43316 | 24.6 |
59384 | 15.4 |
60268 | 16.9 |
66716 | 7.2 |
109668 | 11.6 |
54028 | 26.4 |
51584 | 21.4 |
65156 | 19.2 |
37492 | 15.1 |
70252 | 9.0 |
72332 | 9.4 |
64740 | 19.0 |
80600 | 3.5 |
111800 | 22.1 |
95992 | 10.9 |
29796 | 15.1 |
345280 | 10.2 |
49868 | 17.3 |
31824 | 33.3 |
94640 | 22.8 |
73372 | 11.1 |
53352 | 12.4 |
66924 | 20.9 |
41600 | 6.7 |
57980 | 7.1 |
84812 | 11.8 |
99320 | 14.0 |
51792 | 10.1 |
47736 | 6.4 |
65572 | 12.4 |
54756 | 17.6 |
63492 | 15.1 |
90376 | 23.6 |
163384 | 35.7 |
98800 | 23.2 |
22204 | 12.4 |
88400 | 44.4 |
18720 | 2.1 |
23868 | 18.4 |
69680 | 16.1 |
37908 | 15.1 |
11596 | 22.7 |
109252 | 23.4 |
56264 | 25.7 |
92612 | 27.0 |
41132 | 19.9 |
108784 | 43.7 |
81796 | 16.4 |
54340 | 11.6 |
88088 | 24.8 |
23556 | 26.2 |
58760 | 44.5 |
69368 | 22.3 |
69888 | 22.3 |
82420 | 35.1 |
101192 | 13.1 |
84188 | 11.0 |
84240 | 19.4 |
50284 | 28.5 |
74412 | 43.9 |
64012 | 26.8 |
40040 | 15.7 |
82888 | 15.0 |
81536 | 28.2 |
51740 | 15.4 |
56004 | 20.0 |
60372 | 42.2 |
72852 | 19.6 |
58604 | 16.2 |
159536 | 21.5 |
37960 | 29.5 |
37908 | 22.6 |
584116 | 22.9 |
49348 | 13.0 |
189592 | 7.8 |
78104 | 48.1 |
41964 | 18.0 |
37076 | 18.0 |
77428 | 21.7 |
38272 | 21.3 |
63752 | 26.9 |
28236 | 30.5 |
770744 | 19.4 |
46280 | 15.6 |
84604 | 19.4 |
125216 | 29.1 |
116896 | 40.8 |
40924 | 13.7 |
24648 | 11.1 |
22828 | 10.8 |
24180 | 5.1 |
30888 | 12.3 |
35776 | 7.4 |
31564 | 6.2 |
32968 | 12.7 |
27664 | 10.6 |
22932 | 7.4 |
36088 | 12.6 |
27040 | 12.8 |
39364 | 2.9 |
34736 | 13.5 |
41756 | 10.7 |
26000 | 11.9 |
28704 | 12.9 |
21424 | 10.1 |
57200 | 7.3 |
49868 | 14.6 |
17316 | 13.8 |
26156 | 8.9 |
23296 | 14.0 |
38064 | 12.9 |
37440 | 14.5 |
42016 | 14.7 |
48360 | 9.0 |
27300 | 15.5 |
34216 | 12.1 |
28860 | 13.7 |
32552 | 14.4 |
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